Enjoying the advantages of Income Protection Cover
What is Income Protection Cover?
Income protection cover is an policy where policy holders are paid benefits once they are unable to continue working temporarily or permanently, due to an accident or illness.
Some time back my colleague, Mr Richardson was seriously wounded following a grenade attack when he was conducting a project research in Somalia. The damage to his legs and chest were so bad such he was airlifted to the neighboring country, Kenya to receive further medical attention. Unfortunately, Mr Richardson lost both his legs and he had to be bed ridden for over three months and he had to attend regular medical check ups to make sure he didn’t contract infection to the amputated legs. This was very tough for his family as long as he was the bread winner. Mrs Richardson had to require on a second job and sadly, that they had to withdraw their children from school because they might not afford it. of these financial setbacks could are avoided if only Mr Richardson had considered investing in an income insurance cover.
There are differing types of income protection policies Mr Richard could have applied for including
Indemnity value cover- the policy isn’t only more common but also cheaper . it’s suffering from changes in your income
Agreed Value Cover- the policy is more costly. the advantages paid out reflect your income from the day you applied for the policy.
Advantages of Income Protection Cover
What makes this sort of policy more beneficial than other insurance policies including personal accident and sickness policy , accident policy and sickness and unemployment insurance is that
As a policy holder, you’re paid the advantages once you are incapacitated and when the deferred period has expired. You still enjoy the advantages until your demise, retirement, recovery to full health or when the contract expires
You receive the policy benefits regularly, often weekly or monthly
The benefits are tax free
Policy providers cannot cancel the income protection cover as long as you’re paying the premiums
You can obtain waiver of premium whereby, you’ll obtain benefits even once you aren’t paying the premiums
So, What Factors do you have to Consider When Applying For an Income Protection Cover?
1. Establish The Policy’s Key Features
Different income insurance covers have varying features. Therefore, it’s important to determine the precise features of the sort of policy you’re applying for. This includes
The percentage of the salary covered by the policy
Value of the duvet in terms of fixed monthly benefits payable to you
Additional policy benefits designed for your needs
2. the value of the Policy
Different income policy providers offer their products at relatively competitive rates. Therefore, it’s important that you simply apply for a policy that’s affordable and price your money. a number of the factors that determines the value of an income protection cover includes:
Gender- the policy is more costly for ladies than men
Age- the older you’re , the upper the value of premiums
Type of occupation – high-risk occupations attract higher costs than low-risk ones
Deferred period- the longer the deferred period the cheaper the value of the duvet
Lifestyle- high risk lifestyle like smoking and high risk recreations like motor racing affect what proportion you buy your cover
Applying for this sort of policy ensures that you simply have regular income once you are unable to figure due to illness or accident. With the uncertainty about what is going to happen next, you’ll safeguard yourself and people you’re keen on by investing in income protection cover that meet your needs.